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The lubricant viscosity grade improvers market size is estimated to grow at a CAGR of 3.32% between 2022 and 2027. The market size is forecast to increase by USD 719.65 million. The growth of the market depends on several factors, including the increasing demand from end-user industries, the increasing need for reliable machinery and effective maintenance, and the growing investment in the infrastructure sector in APAC.
This lubricant viscosity grade improvers market report extensively covers market segmentation by application (vehicle lubricants and industrial lubricants), product (polymethacrylate (PMA), hydrostyrene diene copolymer (HSD), and polyisobutylene (PIB), and others), and geography (APAC, Europe, North America, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The growing investment in the infrastructure sector in APAC is notably driving the market growth, although factors such as fluctuation in crude oil prices may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growing investment in the infrastructure sector in APAC is the key factor driving the growth of the global lubricant viscosity grade improvers market. China accounts for the largest, fastest-growing value pool driven by growth across sectors, including road transport, construction, and manufacturing. China invested around USD 13.1 billion in the development and construction of the Beijing International Airport in 2020, which is designed to handle about 72 million passengers by 2025. In 2022, China invested USD 3.9 billion in Olympic infrastructure.
In March 2021, the Indian Government allocated nearly 2,92,86,259 USD to enhance the transport infrastructure, giving a massive push to the infrastructure sector in the country. An expense of USD 8.8 billion over six years to strengthen the capacities of primary, secondary, and tertiary care and healthcare systems. These actions taken by governments to improve the infrastructure are expected to drive the growth of construction machinery in APAC, thereby increasing the demand for lubricants. This, in turn, will drive the growth of the lubricant viscosity grade improvers market during the forecast period.
The rising adoption of synthetic lubricants is the primary trend in the global lubricant viscosity grade improvers market growth. Synthetic lubricants are lubricants formulated using base oil from an advanced chemical industry, such as Esthers, PAO (Poly Alpha Olephine). Better-performing synthetic lubricants are corrosion-resistant and antioxidant. Withstands a wide temperature range from -60°C to over 450°C. It also extends lubricant life 4-8 times over petroleum-based lubricants. Provides better performance compared to mineral-based lubricants.
Using synthetic lubricants results in longer machinery life because less wear results in more production during the life of machines and tools. All such benefits are expected to increase the demand for synthetic lubricants, which is expected to have a positive impact on the global lubricant viscosity grade improvers market during the forecast period.
Fluctuation in crude oil prices is a major challenge to the growth of the global lubricant viscosity grade improvers market. The variable cost of raw materials used in the production of lubricating oil thickeners such as polyalkyl methacrylates and olefin copolymers poses a major challenge to the global lubricating oil thickener market. Prices for raw materials such as thermoplastic polymers have fluctuated since 2015. In addition, petroleum and natural gas derivatives are lubricant thickeners. Therefore, the price of these materials fluctuates with the price of natural gas and crude oil. Strong fluctuations in the price of crude oil and its derivatives are caused by a systemic demand-supply imbalance in the global crude oil industry.
As some of the raw materials used extensively to manufacture lubricant viscosity grade improvers are petroleum derivatives, fluctuations in their prices can lead to unpredictability in the market. This can adversely affect production costs and reduce profit margins. Hence, volatility in the price of crude oil will hamper the growth of the global lubricant viscosity grade improvers market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Lubricant Viscosity Grade Improvers Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
BPT Chemicals Co. Ltd.: The company offers lubricant viscosity grade improvers such as BPT Viscotech EPC-100, BPT Viscotech OCP-100, and BPT Viscotech SIS-100. Also, the company specializes in the manufacturing of viscosity index improvers.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the vehicle lubricants segment will be significant during the forecast period. The rising production of automobiles, coupled with their high demand, mainly in developing countries, has led to an increased demand for lubricants in the automotive industry.
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The vehicle lubricants segment was valued at USD 2,856.20 million in 2017 and continued to grow until 2021. Automotive lubricants are used in oils such as engine oils, hydraulic oils, and shock absorber oils. Lubricants reduce friction and wear, improving fuel efficiency and the life of automotive components. This will extend the life of your vehicle. Currently, the life expectancy of a car in the US is 13 to 17 years. Auto parts lubrication mainly reduces the effort required to overcome friction and reduces wear between friction and bearing surfaces, thereby increasing power output and engine life. Lubrication also helps prevent parts from seizing and causing severe damage. Lubricants provide high resistance to oil degradation, reduce evaporation and increase fuel efficiency. The demand for high-performance lubricants in the automotive industry is overgrowing as the shift to fuel-efficient cars and motorcycles continues.
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APAC is estimated to contribute 43% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The demand for lubricants in APAC is mainly led by the growing automotive industry. The increasing sales of passenger and commercial vehicles in APAC, mainly in China, India, and Japan, have been driving the consumption of lubricant products. For instance, in 2022, the Federation of Automobile Dealers Associations (FADA) reported retail sales of 21,120,441 passenger vehicles and tractors in India. This was a 15% increase in sales compared with 2021.
In addition, the region witnesses a high demand for lubricants from heavy engineering, steel manufacturing, mining and refining, and plastics and polymer industries. For instance, in May 2021, Vedanta Ltd. announced that it is planning to invest USD 1.34 billion to set up an aluminum park in Odisha, India. Such investments are expected to increase the demand for lubricants, thereby propelling the growth of the regional lubricant viscosity grade improvers market during the forecast period.
The outbreak of COVID-19 in 2020 in the region led to a decline in the growth of the regional lubricant viscosity grade improvers market. However, with the initiation of vaccination drives, the number of COVID-19 cases declined in the first half of 2021, which led to the lifting of lockdown restrictions in the region. Eventually, factories and manufacturing units reopened, and construction activities also gained pace. Such recovery in business operations will enable the regional lubricant viscosity grade improvers market to witness growth during the forecast period.
The lubricant viscosity grade improvers market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global lubricant viscosity grade improvers market as a part of the global commodity chemicals market within the global chemicals market. The global commodity chemicals market covers companies that primarily produce industrial and basic chemicals, including, but not limited to, plastics, synthetic fibers, films, commodity-based paints and pigments, explosives, and petrochemicals. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
Lubricant Viscosity Grade Improvers Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.32% |
Market growth 2023-2027 |
USD 719.65 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
2.5 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 43% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
American Hitech Petroleum and Chemicals Inc., Asian Oil Co., BASF SE, BPT Chemicals Co. Ltd., CHETAS BIOCHEM, Chevron Corp., Croda International Plc, Eni SpA, Evonik Industries AG, Goodway Chemicals Pvt. Ltd., Innov Oil Pte Ltd., Jinzhou Kangtai Lubricant Additives Co. Ltd., Lanxess AG, Mitsui Chemicals Inc., NewMarket Corp., PETRONAS Chemicals Group Berhad, Sanyo Chemical Industries Ltd., Shanghai Minglan Chemical Co. Ltd., Shell plc, and The Lubrizol Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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